Can your closet predict a recession? This episode delves into the intriguing Hemline Index, a theory first proposed in 1926 that suggests a direct link between women's skirt lengths and the health of the economy. The core idea? Shorter hemlines often appear during times of prosperity, while they tend to fall during economic downturns.

We explore the index's surprising historical accuracy, seeing how hemlines rose during the Roaring Twenties boom, reaching their shortest point in 1926 alongside economic expansion, and then rapidly fell back down with the stock market crash leading into the Great Depression.

Academic research has put the theory to the test, finding that while it holds true, it often operates with a significant three-year time lag. This adds a complex layer to its predictive ability.

Looking at today's fashion landscape in 2025, we examine the apparent contradiction between the predominance of shorter hemlines on runways and streets and mixed economic signals. Could this be the three-year lag at play, reflecting economic conditions from earlier years? Or does the diversity of lengths in 2025 fashion mean the index is becoming less of a simple predictor?

We also uncover other fascinating unconventional economic indicators drawn from consumer behaviour and fashion, including the Men's Underwear Index, the Lipstick Indicator, and even the Japanese Haircut Indicator.

Beyond economics, we discuss how the complex and diverse trends of 2025 – from nostalgic bubble hems to a growing focus on sustainability and durability – truly reflect our current collective mindset, balancing optimism with caution in uncertain times.

Tune in to understand what your wardrobe, and society's fashion choices, might be saying about our shared economic psychology, values, and aspirations.